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Raleigh, N.C. — Verizon Business has agreed to credit $1.7 million toward outstanding invoices with the state Division of Motor Vehicles to settle complaints over hundreds of computers that the state bought that were never delivered.

The DMV has a $51 million sole-source contract with Verizon through 2012 for equipment and services related to its emissions inspections program.

Verizon spokesman Jack Joey said the company would accept the return of 1,120 computers and associated equipment from the DMV.

"The state originally contracted to purchase 3,000 (computers), but participation in the program was less than anticipated," Hoey said in a statement. "We were not required to take the machines back under the contract, but we were willing to work out a satisfactory commercial solution with this important customer."

Verizon fired four employees and disciplined a fifth in October for violating the company's code of business conduct. Sixty-two state workers and family members received Carolina Hurricanes hockey tickets, restaurant meals, spa services and other benefits from Verizon employees from August 2006 to January 2009.

The State Bureau of Investigation is also looking into whether state employees broke the law by accepting the gifts. State ethics rules prohibit employees from receiving gifts from vendors.

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